Both the Nasdaq and S&P indices are closing the session with nearly identical gains of around 0.45% on the day. That bounce arrives at the end of a down week for every benchmark tracked below, so Friday's strength reads as a partial rebound rather than a reversal of the week's broader pullback. From a technical perspective, both are also ending the week caught between key shorter-term moving averages — below their 100-hour moving averages on the topside, but above their 200-hour moving averages on the downside.

For readers newer to chart-based analysis, hourly moving averages smooth price over shorter windows — the 100-hour average spans roughly three weeks of US trading sessions and the 200-hour about six — and they are among the most widely followed reference points for short-term traders gauging momentum.

That sets up clearly defined technical goalposts heading into next week's trading. As long as the indices remain between those moving averages, the technical bias is more neutral, with traders waiting for the next break. A move below the 200-hour moving average would tilt the bias more to the downside and have traders looking toward lower targets. Conversely, a break above the 100-hour moving average would give buyers greater control and shift the bias more bullish.

Of the two indices, the S&P remains relatively stronger. Its August rally extended to fresh all-time highs, while the Nasdaq remains below the record high reached in early June — a divergence that highlights the Nasdaq's relative underperformance in recent trading.

Heading into next week, the 100-hour and 200-hour moving averages will serve as the key technical barometers for both indices, marking the levels that would shift the bias more bullish or bearish and the targets traders will watch in the direction of the next break.

Friday's closing levels

• Dow Industrial Average: up 518.05 points, or 0.98%, at 53,282.32
• S&P: up 33.17 points, or 0.43%, at 7,674.32
• Nasdaq index: up 113.29 points, or 0.43%, at 26,180.45
• Russell 2000: up 25.43 points, or 0.85%, at 3,017.87
• Nasdaq 100: up 95.69 points, or 0.33%, at 29,308.86

Weekly performance

• Dow industrial average: -0.85%
• S&P: -1.43%
• Nasdaq index: -2.05%
• Russell 2000: -1.64%
• Nasdaq 100: -2.45%

The weekly losses were broad-based, spanning blue chips, growth-heavy technology benchmarks and small caps, with the tech-focused indexes underperforming the Dow.

Bitcoin had one of its best trading weeks since March 2023, gaining more than 23%, a move that helped propel shares of Coinbase and Strategy. The two companies are among the market's most direct crypto proxies: Coinbase operates one of the largest US cryptocurrency exchanges, while Strategy (formerly MicroStrategy) is one of the largest corporate holders of bitcoin, which is why both stocks are closely watched as reads on the token's swings. Coinbase shares are up 25.61% on the week, while Strategy shares soared 28.17%.

The week's biggest losers

The week's biggest losers were led by a sharp selloff in Nebius, which fell more than 21%. The AI infrastructure company came under pressure after announcing a large convertible debt offering — debt that can later be exchanged for company shares — reversing some of its recent strong gains.

Other notable weekly decliners included:

• Nebius NV: -21.09%
• Arm: -12.89%
• Alaska Air: -12.14%
• Intel: -12.14%
• CrowdStrike: -11.47%
• Vertiv Holdings: -10.82%
• Ambarella: -10.12%
• Baidu: -10.09%
• Walmart: -10.04%
• GE Vernova: -10.01%

The weakness was particularly notable among technology and AI-related names, with Nebius, Arm, Intel, CrowdStrike, Vertiv and Ambarella all suffering double-digit declines. Walmart also stood out, dropping just over 10% after earnings, while Alaska Air was one of the week's largest non-technology decliners as oil prices moved higher — a headwind for airlines, for whom fuel is among the largest operating costs.

Source: ForexLive